GDYN Dividend Type Payments
Although GDYN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Grid Dynamics Holdings, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:15 PM ET):
| Grid Dynamics Holdings, Inc. - Class A (GDYN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 14.11 |
14.14 |
14.12 |
-0.08 |
283K |
465 |
2.3B |
GDYN Dividend-Like Income Using Covered Calls
With GDYN at 14.12, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield |
Annual Premium |
Cents/Day |
| 3% |
0.42 |
0.1 |
| 5% |
0.71 |
0.2 |
| 10% |
1.41 |
0.4 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
15.00 |
0.45 |
17 |
2.6 |
0.86 (6.1%) |
| Sep 19 |
15.00 |
1.60 |
143 |
1.1 |
0.86 (6.1%) |
| 5% Yield On GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
15.00 |
0.45 |
17 |
2.6 |
0.86 (6.1%) |
| Sep 19 |
15.00 |
1.60 |
143 |
1.1 |
0.86 (6.1%) |
| 10% Yield On GDYN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
15.00 |
0.45 |
17 |
2.6 |
0.86 (6.1%) |
| Sep 19 |
15.00 |
1.60 |
143 |
1.1 |
0.86 (6.1%) |
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